Volvo wagons are no more, says CEO – too expensive to make, SUVs and sedans only from now on

There was a time when the Volvo name was intrinsically linked to boxy station wagons. Even now, mention the Gothenburg brand and enthusiasts would immediately imagine either a 240 GL longroof stuffed with Ikea flat packs or a slammed 850 BTCC touring car flying across kerbs with Rickard Rydell behind the wheel.

But even Volvo is saying goodbye to all of that heritage, because the days of the Swedish wagon are numbered. Subsequent to the reveal of the new ES90 electric sedan – with the notable absence of an estate equivalent (EV90?) – CEO Jim Rowan was asked by Auto Express if he could envision a future without a traditional Volvo wagon, to which he simply replied: “Yes. Because I think [the market has] changed, right?”

Cost is definitely a factor in the wagon’s culling, with Rowan saying that it is expensive to introduce new models and keep producing them, adding that it would be better (and cheaper) to release different variations of existing products.

“We need to make a choice: rather than bring out a [new] V90 for example, are we better to position that car in a slightly different way? So we have the Black Editions, we have the Cross Country editions – we now have different editions of the same base car. It’s much, much cheaper, and much more cost effective for us to drive more volume through that same platform and that same form factor,” he said.

Rowan’s comments come just weeks after Volvo’s UK commercial director Robert Deane hinted that discontinuing wagons there – and willingly ceding the market to its German competitors – was a mistake. The company ended up reintroducing the V60 and V90 less than a year later, relenting to resurgent demand. Even in Malaysia, where the wagon is closely associated with hearses, Volvo Car Malaysia continues to sell the V60 – still CKD locally assembled in Shah Alam.

But Rowan justified the beloved body style’s axing, saying that the company is “making very conscious choices” when it comes to market positioning. “Where we’re differentiating is with SUVs – nice high ride height, very safe – and we think we can protect that beachhead against the competition. It’s much easier than us becoming distracted by too many models.”

Volvo’s renewed focus on producing derivatives of existing models could give rise to performance variants to take on hot BMW M and Mercedes-AMG cars. “There is always a niche. The sporty family car; there is someone who wants to have the versatility of a family car, but also the performance,” said chief product and strategy officer Erik Severinson.

“I think there are niches within your core segments where you can do derivatives,” he said. “But you can’t really completely go into another type of…see what I mean?” he said, alluding to different body styles.

Volvo’s product repositioning is evident in the electric ES90 – a fastback sedan-crossover mashup with five doors and a high ground clearance. The latter would make building a wagon version rather redundant, because such a model already exists – it’s called the EX90.

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